The Curious Case Of Toilet Paper Sales And Economic Recovery

Does increased toilet paper sales signal a strong economic recovery? An article in the ETF Database, a popular site covering the exchange-traded fund industry, wonders. It reports increasing demand for expensive toilet paper in recent times in contrast to the past few years when sales had plunged, as consumers, affected by recession, turned frugal and slashed discretionary household items from their budget.

However, in the past year, tissue production has gone up 13% and leading brands of tissue papers have been experiencing strong sales. All this translates to an economic recovery, says Anthony Mirhaydari, a senior research analyst, who was quoted by ETF Database.

Because people are literally flushing the money they spend on these products down the toilet, spending habits in this very personal area can reveal important clues about the financial health of shoppers. And that reflects on the growth potential for the economy and the stock market as a whole.

ETF Database, however, cautions investors against making any major investing decisions based solely on toilet paper demand.

ETF Database: “Are Toilet Paper Sales Signaling A Strong Recovery?”

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